Is it wise to use a Virtual Assistant? Analyze the comparisons below and make your own decision.
Employee Virtual Assistant
Compensated for actual time worked X
Vacation/Personal Time/Sick Time X
Life Insurnace/Health Insurance/Dental/Vision X
401k, Retirement Plan X
Payroll Taxes X
Unemployment Taxes X
Workers' Compensation X
Provided Office Space X
Provided Office Equipment X
It has been noted that employers can end up paying 1.5 to 2.5 times the amount of the actual salary of an employee. Benefits, overtime, vacation, sick days, taxes, and general overhead can add up.
Employee
Salary
Base Salary $28,800.00 $15/hr _ 40 hours per week - 160 hours per month
Overtime $2,160.00 2 hours per week _ a time and a half
Bonuses $500.00
Total Annual Pay $31,460.00
Benefits
401k $1,258.40 4%
Social Security $1,950.52 6.20%
Medicare $456.17 1.45%
Medical Insurance $6,000.00 $500/month
Dental Insurance $1,200.00 $100/month
Vision Insurance $1,200.00 $100/month
Vacation Time $1,200.00 2 weeks
Personal Days $360.00 3 days
Sick Days $1,200.00 10 days
Holidays $840.00 7 days
Total Benefits $15,665.09
Other Expenses
Office Space $2,000.00 Includes general overhead cost as: equipment, utilities,
office space lease (conservative figure)
Unemployment $309.00 State & Federal
Admin costs $2,202.20 7% (recruiting, hiring, training)
Total $4,703.11
Total Employer Cost $51,828.20
Virtual Assistant (VA)
Hourly Rate $35.00 per hour Paid for actual hours worked
Weekly $700.00 20 hours
Monthly $2,800.00 80 hours
Annually $33,600.00
Savings of $18,228.20
Weekly $875.00 25 hours
Monthly $3,500.00 100 hours
Annually $42,000.00
Savings of $9,828.20
Weekly $1050.00 30 hours
Monthly $4,200.00 120 hours
Annually $50,400.00
Savings of $1,428.20
Additionally, a full-time staff person is very unlikely to be 100% productive because of idle time, errands,
tasks, personal matters, and a learning curve for certain functions. This is combined with an employer's
inability to generate work due to distractions, staff meetings, company functions, lack of time to delegate or
supervise, and sales fluctuations. So, depending on the productivity level of a full-time employee, you may
be paying up to 3 times his or her actual salary! Virtual Assistants can be highly productive because they
are being compensated ONLY for the time worked.
